Managing Vulnerability to Natural Disasters and Financing in Costa Rica
IBRD Financial Products
Costa Rica selected
Similar to a line of credit, a Deferred Drawdown Option (DDO) designed for countries with
no immediate need for funds...
...but that could face liquidity gap due to an unforeseen event.
DDOs fall under guidelines for Development Policy Lending (fast disbursing, budget support).
1) DPL with Cat-DDO: $65 million
Provides immediate liquidity after a
natural disaster results in the
declaration of a state of emergency.
Deferred disbursement of a project from
3 up to 15 years
Requires preparation or existence of a
disaster risk management program
2) DPL with DDO: US$500 million
An immediate source of liquidity when
the borrowers need it
Deferred disbursement of a project from
3 up to 6 years
Periodic monitoring of borrower's comp
liance with DPL program and macro-
economic framework by the Bank
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